Social Entrepreneurship and Cultural Heritage - Prosoa - Rural
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Social Entrepreneurship and Cultural Heritage
Disclaimer
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" Prosoa Rural project has been funded with the support from the European Commission. This publication reflects
the views only of the author and the Commission cannot be held responsible for any use which may be made of the
information contained therein."
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_________________________________
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The module is open and available
Developed by
through the project’s website
INSTITUTE OF ENTREPRENEURSHIP
http://www.prosoarural.ilabour.eu/outp DEVELOPMENT
uts/ Ph: +30 2410 626943
for all learners who are interested in it. Email: info@ied.eu
Website: www.ied.eu
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Page | 1
TABLE OF CONTENTS
Project and Partners ...................................................................................................................................................... 5
Objectives ...................................................................................................................................................................... 7
SECTION 1 - INTRODUCTION TO SOCIAL ENTREPRENEURSHIP AND CULTURAL HERITAGE ....................................... 8
1.1 What is Social Entrepreurship?............................................................................................................................ 8
1.1.1 What do a Social Enterprise look like? ......................................................................................................... 9
1.1.2 What forms of business can a Social Enterprise take? .............................................................................. 10
1.1.3 What value, Impact can a Social Enterprise create? .................................................................................. 10
1.1.4 Social enterprises around the world .......................................................................................................... 11
1.2 Types of social entrepreneurs ........................................................................................................................... 12
1.3 Social Entrepreneurship Skills ............................................................................................................................ 13
1.4 What is Cultural Heritage? ................................................................................................................................. 13
1.5 Types of “heritage” ............................................................................................................................................ 14
1.5.1 Cultural Property ........................................................................................................................................ 14
1.5.2 Intangible Culture ....................................................................................................................................... 14
1.5.3 Natural Heritage ......................................................................................................................................... 15
1.5 Cultural Entreprenesurship................................................................................................................................ 15
1.5.1 Social Entrepreneur vs Cultural Entrepreneur ........................................................................................... 15
1.5.2 Taxonomy of Cultural entrpreneurship components ................................................................................ 16
Exercises................................................................................................................................................................... 17
1.6.1 Big Ideas ..................................................................................................................................................... 17
1.6.2 Challenge dynamic ..................................................................................................................................... 17
1.6.3 Five Whys ................................................................................................................................................... 17
1.6.4 Mirror mirror .............................................................................................................................................. 17
1.6.5 The context map......................................................................................................................................... 18
SECTION 2 – DEVELOPING YOUR IDEA FOR SOCIAL ENTREPRISE .............................................................................. 19
2.1 Idea development .............................................................................................................................................. 19
2.2 What is a business model? ................................................................................................................................ 21
2.3 The social Business Model Canvas ..................................................................................................................... 21
2.4 Forming a social Business Plan .......................................................................................................................... 26
Exercises................................................................................................................................................................... 27
2.5.1 Inside Out ................................................................................................................................................... 27
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2.5.2 Upside Down .............................................................................................................................................. 28
2.5.3 From black to Blank .................................................................................................................................... 28
2.5.4 The business Canvas ................................................................................................................................... 28
2.5.5 The business plan ....................................................................................................................................... 29
SECTION 3 - BUSINESS MANAGEMENT ....................................................................................................................... 30
3.1 Managing a firm ................................................................................................................................................. 30
3.1.1 What actions of management can an entrepreneur follow?..................................................................... 30
3.2 Perspectives on management ........................................................................................................................... 31
3.3 Managing Change .............................................................................................................................................. 32
3.5 Human resources management and recruitment ............................................................................................. 33
3.6 Payroll management .......................................................................................................................................... 35
3.7 Occupational health care and safety ................................................................................................................. 35
Exercises................................................................................................................................................................... 36
3.8.1 Planning ...................................................................................................................................................... 36
3.8.2 Organization ............................................................................................................................................... 36
3.8.3 Administration ............................................................................................................................................ 36
3.8.4 Coordination ............................................................................................................................................... 37
3.8.5 Check .......................................................................................................................................................... 37
SECTION 4 - MARKETING FOR SOCIAL ENTREPRISES.................................................................................................. 38
4.1 What is marketing? ............................................................................................................................................ 38
4.2 Forms of marketing............................................................................................................................................ 39
4.3 Marketing Strategy ............................................................................................................................................ 40
4.3.1 Marketing Mix ............................................................................................................................................ 41
4.3.2 Segmentation ............................................................................................................................................. 45
4.3.4 Setting up your digital footprint ................................................................................................................. 46
Exercises................................................................................................................................................................... 48
4.4.1 Teamwork ................................................................................................................................................... 48
4.4.2 Station ........................................................................................................................................................ 48
4.4.3 Matching Cards........................................................................................................................................... 49
4.4.4 Documentary .............................................................................................................................................. 49
4.4.5 Films & Critics ............................................................................................................................................. 49
SECTION 5 – BASIC FINANCIAL MANAGEMENT AND FUNDRAISING ......................................................................... 52
5.1 Basic financial management .............................................................................................................................. 52
5.1.1 Calculating the start-up capital .................................................................................................................. 52
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5.1.2 Setting the product or service price ........................................................................................................... 53
5.1.3 What and why pricing strategy is important? How we can develop a pricing strategy? .......................... 54
5.1.4 The income Statement ............................................................................................................................... 54
5.2 Fundraising......................................................................................................................................................... 57
5.2.1 How to reach Investors .............................................................................................................................. 57
5.2.2 What to look for in an investor? ................................................................................................................ 58
5.2.3 Fundraising Sources.................................................................................................................................... 58
5.2.4 Planning for fundraising ............................................................................................................................. 59
Exercises................................................................................................................................................................... 60
5.3.1 Calculate your startup capital .................................................................................................................... 60
5.3.2 Income statement ...................................................................................................................................... 60
5.3.3 Break-even point ........................................................................................................................................ 60
5.3.4 One-page leaflet ......................................................................................................................................... 60
5.3.5 Create a Crowdfunding campaign .............................................................................................................. 61
REFERENCES ................................................................................................................................................................. 62
Page | 4
PROJECT AND PARTNERS
The project “Prosoa Rural - Promoting Social Awareness in Rural Area (2018-2-ES02-KA205-011523)”
aims to develop materials that support educators in rural training centers so that they can transmit these
values to young people. The materials will be based on a methodology focused on the promotion of active
participation and social entrepreneurship linked to the conservation of Cultural Heritage and Traditions
at local, regional, national and European level. The project is funded by the Spanish National Agency within
the Erasmus Plus of the EU. The project consists of the following partnership:
_____________________________________________________________________________________
Acción Laboral
http://www.accionlaboral.com
_____________________________________________________________________________________
IED
http://ied.eu/
_____________________________________________________________________________________
INOVA+
http://www.inova.business
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Page | 5
Futuro Digitale
http://www.futurodigitale.org
_____________________________________________________________________________________
International Labour Association
http://www.ilabour.eu
_____________________________________________________________________________________
Project Duration: December 2018 – July 2020
Learn more about the project on:
Website: http://www.prosoarural.ilabour.eu
Facebook: https://www.facebook.com/prosoaruralproject
Page | 6
OBJECTIVES
This training module aims to promote the initiative and social entrepreneurship of young people based
on Cultural Heritage and Traditions
Through this module, young people will be trained in and develop entrepreneurial skills, with the aim that
they can be people with a greater social initiative, capable of generating activities and / or businesses
related to Cultural Heritage, and their conservation. In addition to generating greater high-quality skills
for young people, it contributes to a greater possibility of initiatives arising in rural environments that
conserve the cultural heritage of small rural municipalities.
The main objectives of this training module:
✓ Raise social awareness among young people in rural areas.
✓ Improve the entrepreneurship skills of young people.
✓ Promote social entrepreneurship among young people in rural areas.
✓ Create a greater commitment and awareness about the necessity of conserving the Cultural
Heritage and the Traditions.
Page | 7
SECTION 1 - INTRODUCTION TO SOCIAL ENTREPRENEURSHIP AND CULTURAL
HERITAGE
1.1 WHAT IS SOCIAL ENTREPREURSHIP?
Social entrepreneurship is an increasingly popular form of entrepreneurship that a) aims to achieve a
social purpose through the creation of social value, and b) aims at solving social problems such as
environmental protection, education, unemployment, health services, poverty, civil rights, racism, energy,
gender inequality, water resources, animal protection, etc1.
Social Entrepreneurship Social Purpose
Solving social problems Creation of social value
Addressing the specific problem, the social enterprise lies at specific activities and solutions that often
comes though the implementation of innovative approaches.
However, what is meant by the term “Social enterprise” and how it differs from regular business
sometimes isn’t so clear. But a social enterprise can be both profit-making and non-profit-making. We can
consider that a crucial element that separates “social” from “traditional” business is that social business
aims at solving specific social problems rather than at achieving only economy outcomes.1 Just like a
regular business entrepreneur, a social entrepreneur must take risks and be determined in order for his
or her social venture to be successful.
We can consider social entrepreneurship as a combination of 3 pillars: business, social engagement and
social services. But, how actually a social enterprise works?
VIDEO 1: What is social entrepreneurship and how it works?
Page | 8
1.1.1 WHAT DO A SOCIAL ENTERPRISE LOOK LIKE?
Social enterprise can:
- Be in all shapes and sizes
- Be a set up and operated by a diversity of people irrespective of gender, religion, ethnicity, sexual
orientation, age
- Sell a variety of products and services
Have a look at the following examples. Each image shows a product or service sold by a social
enterprise:
-
-
- -
-
Page | 9EXAMPLES OF SOCIAL ENTREPRISES
1.1.2 WHAT FORMS OF BUSINESS CAN A SOCIAL ENTERPRISE TAKE?
A social enterprise can take almost all business forms. Some examples are the following:
Art - Crafts -
Music - Sports Clothing - Accessories
Collectibles
Food-Cafe-Shop-Bar Technologies Science, etc..
For example, at each social issue we can have the following examples of social enterprises:
Social Issue Business
Homelessness Tour Guiding Business
Youth Unemployment Café/Restaurant
Refugees and Migrants Grocery Store
Disabled Adults Magazine/Newspaper
Vulnerable Elderly People Upcycling Shop
Indigenous Populations Art Gallery
1.1.3 WHAT VALUE, IMPACT CAN A SOCIAL E NTERPRISE CREATE?
Page | 10Like any other business, social enterprises try to sell products or services in order to make a profit. In order
to be successful they must be clear on the value they bring to others. What makes social enterprises
different from other businesses is that they can create value thought many different ways:
❖ Can use its profit to do social or environmental good.
❖ Find and create new solutions, ways of working to address social problems.
❖ Apply commercial strategies to maximize improvements in human & environmental well-being.
❖ Innovative use of business technologies and resources to find solutions to social problems.
❖ Work towards cultural, social or environmental causes to create sustainable and viable impact to
people.
❖ Re-establish community-based economies and re-invest locally into the community and not into
the rich stakeholders.
Impact is also a very important key element in social enterprises. It’s the result of the sale of their products
or services.
The impacts that social enterprises can create are:
❖ Create job opportunities
❖ Increase the employability and sharing work knowledge to young people so they can be prepared
to join the workplace
❖ Use an amount of their profits to pay for shelter for homeless people or to work with drug addicts.
❖ Provide meals for the elderly and disabled people in their homes etc.
1.1.4 SOCIAL ENTERPRISES AROUND THE WORLD
Learning from other stories helps you to achieve success and avoid failure. Of course, every activity in life
has a percentage of risk.
Around the world, there are many successful social enterprises that have achieved a social impact. But
what is meant by the word “social impact”?
Social impact is the positive change of the community or society from the activities of a business.
Let’s take an example:
The Big Issue from UK: is a street newspaper, founded on 1991, that offers to homeless people, or
individuals at risk of homelessness, the opportunity to earn an income through selling a magazine to
the public. Vendors buy The Big Issue magazine for £1.25 and sell it for £2.50, meaning each seller is a
micro-entrepreneur who is working, not begging.
Camara education from Ireland: is a social enterprise, founded on 2005, that installs computers in
schools and youth centers and trains teachers to use them. Camara education is active in Africa
(Ethiopia, Kenya, Zambia, Lesotho and Tanzania) and Ireland.
Page | 11Specialisterne from Denmark: trains people with autism spectrum disorder (ASD) to meet the
requirements of the business sector. Specialisterne also provides a working environment where it is
'normal' to have ASD and where the role of the management and staff is to create the best possible
working environment for the employees with ASD. Employees work as business consultants on tasks
such as software testing, programming and data entry for the public and private sectors. Specialisterne
is active in Europe (Denmark, Austria, Iceland, Ireland, Italy, Norway, Spain), Australia, Canada, Brazil,
USA and Singapore.
1.2 TYPES OF SOCIAL ENTREPRENEURS
Social entrepreneurs may seek to produce environmentally-friendly products, focus on philanthropic
activities or make diverse contributions to their communities and societies adopting business models to
offer creative solutions to complex and persistent social problems2.
We can identify a variety social entrepreneurs types3, however, we will focus on just 4 of them: social
bricoleur, social constructionists, social engineer and community social entrepreneur.
Page | 12Social Bricoleur They address a local social need in which they have the expertise and
resources to find innovative solutions.
Social Constructionists They address social needs that goverments, agencies and businesses
cannot thought the creation and operation of alternative solutions,
goods and services.
Social Engineer They address significant social needs throught the creation of newer
and more effective social systems to replace existing ones.
Community Social They address social needs of a community within a relatively narrow
Entrepreneur geographical area.
1.3 SOCIAL ENTREPRENEURSHIP SKILLS
Every kind of entrepreneur must set a clear goal that they can achieve thought concrete actions. In some
cases, reaching this goal may take a lot of time. Having an idea and a plan helps entrepreneurs to set paths
that they can follow, helps them to create a mission which will guide them and remind them their goal
and keep them motivated in hard times. Some of the entrepreneur skills, that helps you to come closer
to your goal and makes you stay focus on that, are:
Creativity and Communication Critical and design Business storytelling
independence thinking
Passion Empathy and self- Future - oriented Decision making
awareness
Self-motivation and Teamworking and Resourceful Time management and
confidence collaboration Stress tolerance
Optimism Networking and Adventurous Growth mindset
relationship building
Mission and values Innovativeness and risk Ability to motivate, Digital knowledge,
taking guide, support and lead desire and ability to
others learn continuously
1.4 WHAT IS CULTURAL HERITAGE?
Cultural heritage is a collection of ancient and traditional customs and objects that have been bequeathed
by the old generations, presented in the present and granted in the future for the new generations.
Each country, city or small village has its own, unique culture, traditions and customs.
Page | 13If you are curious to learn about the traditions and customs in Spain, Greece, Portugal, the Netherlands,
Italy and Turkey, you can check-out our catalogue of best practices in cultural heritage in the project’s
website: http://www.prosoarural.ilabour.eu/outputs/.
1.5 TYPES OF “HERITAGE”
We can categorize the heritage in 3 types, cultural property, intangible culture and natural heritage.
1.5.1 CULTURAL PROPERTY
Cultural property is related with:
Museums and the maintenance of the arts,
architectures, digital, movie and audio
materials.
Acropolis – Athens, Greece
1.5.2 INTANGIBLE CULTURE
Intangible culture is related with:
History, language, religion, folklore, social
customs and practices, human cultural activity.
Momoeria – Kozani, Greece
Page | 141.5.3 NATURAL HERITAGE
Natural heritage is related with:
Natural environment (flora and fauna) and
countryside.
Navagio beach - Zante, Greece
1.5 CULTURAL ENTREPRENESURSHIP
Cultural Entrepreneurship (also referred to as culturepreneurship or art entrepreneurship) – is a
management process through which cultural workers seek to support their creativity and autonomy,
advance their capacity for adaptability, and create artistic as well as economic and social value. (Throsby,
2001)
1.5.1 SOCIAL ENTREPRENEUR VS CULTURAL ENTREPRENEUR
Social Cultural
Entrepreneurs Entrepreneurs They create cultural
They create products (visual art,
business (product or music, film etc.) that
service) to address a present new ways of
social problem understanding social
problems.
Goals: business
Goals: self-
success and social
determination -
change are equally
promote global
important - promote
change
social change
Social economy Creative economy
Page | 15The cultural Entrepreneur
VIDEO 2: The Cultural Entrepreneur - Taking a Risk and Getting It Right?
1.5.2 TAXONOMY OF CULTURAL ENTRPRENEURSHIP COMPONENTS
Competencies/
Strategies Tactics Mindset Context
Skills
New funding
Social Opportunity Future
approach and Culture
enterprises spotting oriented
sources
Creative Training and
Partnership Open-minded Traditions
enterprises Education
Community
of Heritage Networking Community
enterprise
New New
Local
ventures technologies
New
Change
marketing Artistic field
management
approach
Bricolage
Page | 16EXERCISES
1.6.1 BIG IDEAS
Introduction of the exercise:
The principal point of this dynamic is answering the question:
in what idea should I invest?
Generating and identifying business ideas that "could" be viable, but it must be contrasted with what the
environment really wants.
Start the exercise!
1.6.2 CHALLENGE DYNAMIC
Introduction of the exercise:
In this group dynamic, the main objective is to make the team face new challenges and, for that, it is necessary for
people to feel confident and safe.
Start the exercise!
1.6.3 FIVE WHYS
Introduction of the exercise:
This dynamic helps to understand the relationship between a problem and its context. It is used to "go beyond the
surface of a problem and discover the root cause, because the problems are approached more sustainably when
an analysis of their origin is carried out".
Start the exercise!
1.6.4 MIRROR MIRROR
Introduction of the exercise:
Knowing and identifying the entrepreneurial characteristics of the participants. Expected learnings are:
- Knowledge improvement: Recognize the diverse characteristics that every entrepreneur. You must cultivate to
implement a successful business.
Page | 17- Skills improvement: Express in a creative way the entrepreneurial characteristics that recognizes in his colleagues
and that he recognizes himself
- Attitude improvement: Be willing to evaluate your entrepreneurial characteristics in a positive way, proposing
solutions to strengthen those characteristics which identifies them as weak.
Start the exercise!
1.6.5 THE CONTEXT MAP
Introduction of the exercise:
This dynamic is designed to show us the external factors, trends and forces that surround the idea, because, once
we have a systemic vision of the external environment in which we move, we will be better equipped to respond
proactively.
Start the exercise!
Page | 18SECTION 2 – DEVELOPING YOUR IDEA FOR SOCIAL ENTREPRISE
2.1 IDEA DEVELOPMENT
Looking for the product or service idea might seem difficult sometimes. A business starts from an idea.
During your life, many ideas might pop-ups. But, brainstorming and design thinking will help you to
come out with what is closer to your vision, mission and passion. How to look for a product or service
idea?
1. Start with what you have
Brainstorming: Start to record all the ideas that pop-ups in your mind. After that, take your time
evaluate each idea and find their potentials of development.
Ideas that you already have: It might be an idea that you have for a long time, e.g when you were a
child. Why not to give it a try?
Think about your experience: you might have a skill or a set of experiences that makes you expert on a
specific topic and that can enable you enter the market easier. Try to find out which are these skills and
experiences and how can you put them in idea action.
Think about your passions: Your passion about something is the most powerful and
motivated source of ideas because enables you to take care of them, work for them
and make you do of what to wish. There is a saying that goes” if you love what you
do you will never work a day I your life”.
An example: Minnal carry-on started by two guys who love travelling but were
frustrated with their carry-on bags, so they created their own. Their passion for
travelling helped them design a unique bag. https://www.minaal.com/
2. Look around your community
- Listen to people and note of what they are saying. You might find out new and
interesting retail concepts. Another great source of news and information can be the newspapers.
- Have a look around you neighbor, your work and every day life. What products or services can make
the life of these people easier? What is difficult for them to find in the local markets? What makes your
community unique that can be spread to the other communities?
- A great source of ideas is to find solutions on people pains. Providing a product or service that helps
people solving some of their problems or improve their life can create a great place for your idea to
develop and growth.
3. Find customers trends
Page | 19Following what customers buy is a great idea to have an overview of what products are in high demand.
This can also help you to come out with new ideas that you previously didn’t even know or image. There
are few tools that helps you follow the customers buying trends:
Trend Hunter
Trend Watching
Google trends
Another important source where you can find the customers trends is though travelling. Travelling
enables you observing what are the trends around the world and gives you new ideas of inspiration.
4. Social and online networks
Social media and social networks like facebook, Instagram, ebay, amazon etc are another useful source
that helps you find new product or service ideas.
5. Design Thinking
Design thinking is a process that helps you seek to understand the user, find the challenges, and
redefine the problem in order to create new solving approaches.
The design thinking process is:
VIDEO 3: The design thinking process?
Page | 20For additional reading and discovering about idea development and design thinking, check out this
very interesting material here!
(you just have to register and you can have a free access to the learning material)
2.2 WHAT IS A BUSINESS MODEL?
The business model is a method that the social business can form, using the available resources in order
to provide solutions to customers’ problems and needs. In particular, a business model can identify the
specific way that the social business serves its products/services, with which social problem is dealing with
and how the money is distributed.
Below, we are about to present you how to use and create the business model canvas and the business
plan for setting up your own social business.
2.3 THE SOCIAL BUSINESS MODEL CANVAS
The Business Model Canvas is a very useful entrepreneurial tool. It gives a short description but a total
overview of your business environment. It also helps you on forming process of your business plan (we
will deal with it in the next sub-section).
The business model canvas, which was created by Alexander Osterwalder in 2010, it enables to focus on
operational, strategic and marketing management of your social business. The Canvas is consisted of nine
blocks. Each block has a list of questions that helps you to brainstorm your idea and which are necessary
to be considered each time.
Page | 21You can download the Business Model Canvas here!
Key Partners: refers to all companies, or organizations that help your enterprises to reduce the risk,
implement actions or acquire resources.
Key Activities: are the most important actions a company must take to operate successfully.
Key Resources: allow an enterprise to create and offer a Value Proposition, reach markets, maintain
relationships with Customer Segments, and earn revenues. Key resources can be physical, financial,
intellectual, or human. Key resources can be owned or leased by the company or acquired from key
partners.
Value Proposition: solves a customer problem or satisfies a customer need.
Customer Segments: is the segmentation of customers following to some common characteristics they
may have such as common needs, common behaviours, or other attributes.
Customer Relationships: builds the type of relationship a company wants to establish with each Customer
Segment. Relationships can range from personal to automated.
Channels: makes the product or services visible to customers. Channels play a significant role in the in the
customer experience.
Page | 22Channels serve several functions, including:
• Raising awareness among customers about a company’s products and services
• Helping customers evaluate a company’s Value Proposition
• Allowing customers to purchase specific products and services
• Delivering a Value Proposition to customers
Cost Structure: describes the most important costs incurred while operating under a particular business
model.
Revenue Streams: describes the revenues earned under the activities of a business.
The key questions4!
Key partners
▪ Who are your key partners?
▪ Who are your key suppliers?
▪ Which key resources are we acquiring
from partners?
▪ Which key activites do partners
perform?
Key activities
▪ What Key Activities do your Value
Propositions require?
▪ Your Distribution Channels?
▪ Customer Relationships?
▪ Revenue Streams?
Page | 23Key resources
▪ What Key Resources do your Value
Propositiors require?
▪ Your Distribution Channels?
▪ Customer Relationships?
▪ Revenue Streams?
Value Propositions
▪ What value do you deliver to the
customer?
▪ Which one of your customer’s
problems are you helping to solve?
▪ What bundles of products and
services are you offering to each
Customer Segment?
▪ Which customer needs are you
satisfying?
Customer Relationships
▪ What type of relationship does each
of your Customer Segments expect
you to establish and maintain with
them?
▪ Which ones have you established?
▪ How are they integrated with the rest
of your business model?
▪ How costly are they?
Page | 24Channels
▪ Through which Channels do your
Customer Segments want to be
reached?
▪ How are you planning to reach them?
▪ How will your Channels be
integrated?
▪ Which ones work best?
▪ Which ones are most cost-efficient?
▪ How will you integrate your Chanels
with customer routines?
Customer Segments
▪ For whom are you creating value?
▪ Who are your most important
customers?
Cost Structure
▪ What are the most important costs
inherent in your business model?
▪ Which Key Resources are most
expensive?
▪ Which Key Activities are most
expensive?
Page | 25Revenue Streams
▪ For what value are your customers
really willing to pay?
▪ For what do they currently pay?
▪ How are they currently paying?
▪ How would they prefer to pay?
▪ How much does each Revenue
Stream contribute to your overall
revenues?
The list of the questions are available here!
Remember, the business model canvas can be used by each type of business but each time needs to be
adopted.
VIDEO 4: How to write a business model canvas?
2.4 FORMING A SOCIAL BUSINESS PLAN
Forming a Social Business Plan is an opportunity to carefully think through every step of starting your
Social Enterprise.
Page | 26This is your opportunity to discover any potential weaknesses in your business idea, identify the
opportunities you might not have considered and plan how you will deal with the challenges that are likely
to arise. A well-written business plan will help you stay focus on your goal and mission, create priorities
and specific action points, growth and communicate your idea to the potential stakeholders and
customers.
A business plan should be clear, complete, opportunistic and reactive. A person outside your business
should be able to understand it!
VIDEO 5: How to write a business plan?
We have developed a downloadable worksheet for you to start work on your business plan.
You can download the Business Plan Template here!
EXERCISES
2.5.1 INSIDE OUT
Introduction of the exercise:
SO…
“Do you know who you are?” - “Do you know where you are?”
SOAR yourself - Strengths, Opportunities, Aspirations, and Results.
Page | 27SCORE your environment - Strengths, Challenges, Options, Responses, and Effectiveness
This exercise is an introductory point aiming to strengthen the team building by getting everyone to
share their entrepreneurial assets and their view for the surrounding rural area ecosystem. It engages
the participants in two reflection phases, during which they develop their contents according to specific
templates and then share within the group of peers.
Start the exercise!
2.5.2 UPSIDE DOWN
Introduction of the exercise:
Creativity cannot be taught…
But on the other hand, it does not need to be taught! It is an internal characteristic of every human being.
What it needs is to be pulled to surface, be refined and enhanced and paired with tools and contexts that
help one break the walls of hesitation. In this exercise we will work together with the participants in order
to bring to surface new fresh and creative ideas. The team will be motivated to share these ideas in the
most entertaining way, and then refine them and build around them.
Start the exercise!
2.5.3 FROM BLACK TO BLANK
Introduction of the exercise:
Entrepreneurs are more than ideators: they are tentators of new ideas, they are innovators that harvest
the opportunities around them and turn them into profit & social benefit in our case. In the context of
this exercise you will be called to identify your first steps and start simulating your idea in scribing, using
a big sheet of paper on which you are called to schematize it (focusing on the user journey). Following this
step, you are not called to systemically describe every detail, but focus on the idea/opportunity and try to
instill the element of evolvement by a vision that satisfies both your identity as an entrepreneur and
cultivates social benefit. Finish with some strong statements regarding the Vision - Mission - Value
Start the exercise!
2.5.4 THE BUSINESS CANVAS
Introduction of the exercise:
Page | 28This exercise is using the already presented in the theory part - BUSINESS CANVA - to have the
participants put down their thoughts and plans and describe in this template their entrepreneurial idea.
Start the exercise!
Download the Business Canvas template!
2.5.5 THE BUSINESS PLAN
Introduction of the exercise:
This exercise is using the already presented in the theory part – BUSINESS PLAN - to have the
participants put down their thoughts and plans and describe in this extended template their
entrepreneurial idea.
Start the exercise!
Download the Business Plan template!
Page | 29SECTION 3 - BUSINESS MANAGEMENT
3.1 MANAGING A FIRM
An effective management requires an overall wellbeing, divided into five sector conditions:
Social
Professional
Physical
Spiritual
Mental
When an entrepreneur has a balanced management, it gives him/her the energy and the appropriate
resources to lead successfully the enterprise.
3.1.1 WHAT ACTIONS OF MANAGEMENT CAN AN ENTREPRENEUR FOLLOW?
① Establish effective and responsive communication
When someone responds immediately and tries to help, this builds a trust relationship. Try to listen and
understand what others try to tell you, feedback will always help finding ways to be better, improve your
products, and provide better services to the society.
② Build a team
A team enables people within an organization to collaborate efficiently and effectively with each other.
Two minds are better that one. Try to build a team where people love to work together, they can perform
and find new innovative solutions and exchange ideas to better approach a problem.
③ Acquire knowledge of finances of the enterprise
Page | 30Finances knowledge enables the entrepreneur to set goals and build a strategy that can drive the
enterprise though the path of success. They can estimate at any time what should be the next step and
how much it will cost. A good finance management gives the opportunity to the enterprise to share more
money on solving social problems and be sustainable on the marketplace. If a social enterprise isn’t
sustainable, it is difficult to help tackling on social problems.
④ Empower others and build a positive environment with in the organization
The working environment is a crucial key element to the business success. If employees and people who
are in the organization or interact with the organization, are happy then they will have the energy to do
their best in the work. They can feel that what they do matters, has social value and impact, so they will
try to find new innovative ways to deliver the task for the social good. Empowerment motivates people
to grow and develop new skills that can help them on communicating, collaborating and providing better
services to the community.
⑤ Be an example
Be the person/enterprise you would admire. Find the characteristics you wish somebody else will
recognize to you, e.g innovative person, the person who find solutions to the problems, the enterprise
that impacted the society, a person who deserve to be treated with respect, an enterprise as an example
for the creation on new enterprises etc. Do what you say, or show it by your actions.
3.2 PERSPECTIVES ON MANAGEMENT
There are many concepts of management.
a) task management where the entrepreneur emphasizes on organization and predictability
b) people management where the entrepreneur emphasizes to achieve changes and deliver actions
c) goal management where the entrepreneur emphasizes to undertake needed actions to ensure
the survival and continuous existence of the enterprise.
A social business in order to achieve its mission will need people who will perform those tasks and
activities that keep the organization active.
We can separate management into two aspects: the short-term and long-term management.
Short—term management (tactical management): means managing daily operations of the organization,
distributing responsibilities and tasks and tracking progress. This can be also divided into three categories
of approaches: i) the goal oriented, ii) the task oriented and iii) the combination of these two perspectives.
Task oriented perspective: refers to managing and supervising tasks and individuals at each task.
Goal oriented perspective: refers to operating with trust and flexibility. The goals can be achieved by self-
organization.
Page | 31Long-term management (strategic management): means to continuous plan, monitor, analys and assess
of what is necessary for the organization to meet its goals and objectives. A typical strategic management
involves: analyzing the strengths and weaknesses (swot analysis), creating action plans, putring action
plans in action, evaluating and measuring the results.
How will you cope with so many tasks?
1. Manage time
2. Prioritize
3. Keep balance between personal life and professional work life
3.3 MANAGING CHANGE
Let’s see the following video in order to learn what is change management!
Video 6: What is change management?
Sometimes, change is necessary in order to prevent an organization from getting stuck in its own world.
As in any other term, change has both advantages and disadvantages. On one hand, change helps
organization to improve tasks or activities, find new approaches for growth, improve life values, spot new
opportunities, break the routine and create a path for progress. But on the other hand, change is
uncertain. Everything that is uncertain makes people have a negative attitude towards it.
Let’s name the change as “problem” at this point. When you have a problem the first thing you do is to
realize and understand which is the situation. Then, you divide the main problem into sub-problems, in
order to simplify and find immediate solutions. If needed, you can divide the sub-problems into other sub
problems if the topic is very general and you cannot find a solution. Though this process you can find the
Page | 32solutions to the main problem. The next step is to implement. Share the problem, situation, with your
employees and explain to them why this should be changed emphasizing on the benefits of this change.
Each time an employee has a concern remind them why. Having shared the situation, present them your
solutions or ask them about what they would suggest in such a case as a best solution. Listen to their
feedback. Having the solutions, you have to start implementing all the appropriate actions for the change.
This is the hard part. But, stay calm and write down what works and what not so that you can improve
accordingly.
1.Realize and
undersand the
situation
8. Write down
what works and 2. Divide the main
what not and problem into sub-
improve problems
accordingly
3. Find Solutions
7. Start Change at each sub-
implement management problem, ways of
actions
6. Provide them
4. Share the ideas
your solutions or
of change to
ask for their 5. Explain them everybody
proposals why this should
be changed and
remind it to them
each time they
are concern about
it
The change can have internal such as personnel turnoff or absenteeism or external factors such as social,
economic or political aspects. Internal factors of change are easier to manage than factors that are
external to the firm.
3.5 HUMAN RESOURCES MANAGEMENT AND RECRUITMENT
Every great business starts with a great team. A team can:
Page | 33boost work Increase improve increase
speed productivity work morale flexibilty
In Human resources management exist four important elements:
• Recruitment
• Payroll management
• Heath
• Occupational safety
The Process of recruitment:
① Plan
Planning is very important when you have to create a team. Decide how many staff members will you
need, what skills, competences and personalities should they have to fit with your business and team.
② Job Description
You might have already in mind the appropriate person for the specific job, a person you know and you
trust. But, if not, you need to create a formal “job description” if you are going through a formal
recruitment process.
③ Interview
Record the date, time and the key points of the discussion with the candidates. Write down how the
decision to hire or not to hire was taken.
④ Recruitment
You have made the decision to offer to the most appropriate candidate the job.
⑤ Contract
It is very important to have a contract with the employee. The contract is an agreement between the
employee and the employer and is the basis of the employment relationship. The contract should include
Page | 34the main terms and conditions of employment, and must include the following: full name of employee
and employer, full address of the company and the employer, nature of work, date of recruitment,
duration of the contract, pay reference period, payment intervals, e.g. weekly, monthly etc., hours of
work, insurance, vacations and paid leave, sick leave, training and notice requirements (conditions for
termination of contract).
⑥ Training
Train your new employees on the job and tasks they should perform so that everybody is working
according to the same system and towards the same goals and missions.
3.6 PAYROLL MANAGEMENT
The payroll management is the calculation and the payment of salaries. The management of salaries is
dependent on the legal environment in which the organization exists. The salary includes tax
administration, social insurance, banks and
pensions.
The salary is paid at the employee at the end of
the payroll month, or as was agreed in the
recruitment process. To calculate the salary,
working hours are needed, this makes the process
easier. When It comes to the payment by tasks,
the process is more complicated. This requires a
clear plan for managing the payrolls as overtime,
and holidays and Sundays salaries must be
accounted for and paid in accordance with tax
withholding and other social contributions.
The amount of salary must be at least the minimum salary as legally established in the country
environment where the organization exists. But the salary can be based on the employee’s work
experience and knowledge. In case of the social enterprises, the salaries have an effect in the community.
3.7 OCCUPATIONAL HEALTH CARE AND SAFETY
The development of community and the quality of work can be improved if occupational health care and
safety are carried out. A working environment should be a pleasant and risk free place for both employees
and employers.
The occupational health care and safety programs include:
Page | 35• Risk of fire or explosion
• Occupational accidents
• Ergonomic risks
• Chemical and biological risks
• Psychosocial factors
• Accident insurance
• Maintenance of physical, mental, social and
well-being of employees
EXERCISES
3.8.1 PLANNING
Introduction of the exercise:
Businesses prepare a bill that shows what kind of work should be done, their order, time, duration, by whom and
by which ways to be accomplished. This draft is called planning.
Start the exercise!
3.8.2 ORGANIZATION
Introduction of the exercise:
The organization aims to establish the business objectives determined in the planning and the
establishment of authority relations between the selected businesses, persons and workplaces to achieve
them. The organization is important for the employees to play an active role in achieving certain goals and
to work together. Nevertheless, the organization provides the link between the tasks of the employees
for the enterprises. It has several principles: unity of purpose, competence, division of labor and
specialization, hierarchy, unity of command, responsibility, balance of authority and responsibility,
balance principle, continuity, facilitation of leadership, definition of tasks.
Start the exercise!
3.8.3 ADMINISTRATION
Introduction of the exercise:
Page | 36Making plans and taking action in line with a common purpose by creating an organizational structure is
called referral and administration. This includes activities related to the manager's influence on the work
of the employees and informing them what to do.
Start the exercise!
3.8.4 COORDINATION
Introduction of the exercise:
Coordination is the harmonization of all activities of an enterprise in order to facilitate work and ensure
success. This situation gains importance according to the size of the enterprise. It is important that the
efforts of the employees are combined to bring the business to its goal. It is closely related to the strength
and value of coordination, ensuring that the work is done effectively, and that there is a regular,
appropriate and achievable communication between employees and the equipment used.
Start the exercise!
3.8.5 CHECK
Introduction of the exercise:
The audit phase forms the final stage of the management process after planning, organization, referral
and administration and coordination. It investigates and determines what other functions achieve, how
and to what extent. Since the function of the audit is to measure and evaluate the results of the activities
and to ensure the success of the plans, it is necessary to know who is responsible for deviating from the
plans and who will make the necessary corrections.
Start the exercise!
Page | 37SECTION 4 - MARKETING FOR SOCIAL ENTREPRISES
4.1 WHAT IS MARKETING?
With the continuous evolution of the digital technology, marketing sometimes is difficult to define.
According to experts:
Marketing can be simply defined as addressing the needs and wants of your clients at a
benefit. It is a strategy of business that includes research, targeting and advertising.
Marketing is the activity, set of institutions, and processes for creating, communicating,
delivering, and exchanging offerings that have value for customers, clients, partners,
and society.
The aim of marketing is to know and understand the customer so well the product or
service fits him and sells itself.
The majority of the people, those who haven’t worked on marketing or even some of those who have
some small experience on it, believe that marketing is just advertising or selling. This is a misconception.
In order to know what actually is marketing we have firstly to learn what is not. The videos bellow presents
you both what it is and what is not marketing.
Video 8: What IS marketing?
In general, marketing aims at two objectives:
✓ Approach new customers by promising value which meets their needs and desires
Page | 38✓ Keep the existing customers by providing them more offers and customer services
In order to better understand the term “marketing”, we must know some important terms such as
“needs” and “desires/wants”.
A Need is something that is essential and important for the people. People’s needs are either physical
such as eating, water, heating, or social such as belonging in a family or having friends.
A desire or want is a strong feeling of wanting to have something or wishing for something to happen. For
example, in USA people like to eat hamburgers when they are hungry but in Greece people prefer pita
souvlaki.
Demand is another important term used in marketing. People always tend to have a variety of options so
they will make the decision of choosing the best option among others by taking into account of their
budget. Marketing is also about managing the demand of the customers.
4.2 FORMS OF MARKETING
Marketing may take any kind of form. In this module, we will identify just two of them, the B2B and B2C
marketing.
But, what do we mean by B2B or B2C marketing?
Who applies B2C marketing?
B2B – Business to Business marketing
is defined as the marketing of products For what kinds of customers is B2C marketing
effective?
and services to other businesses and
organizations. How is a B2C marketing campaign
developed?
What career titles work with B2C marketing
The B2B guide provides you strategies?
knowledge and information about:
Marketing
Guides
What kinds of customers are effectively
marketed with B2B Marketing?
How is a B2B marketing plan developed and B2C – Business to Customer marketing
applied?
is defined as the marketing of products
What types of careers work with B2B
Marketing strategies? or services addressed to individuals in
PowerPoint Presentation order to use in their everyday life.
How can a marketing school help you succeed in a
company which uses this type of marketing
strategy?
The B2C guide provides you
knowledge and information about:
Page | 39You can also read
